System Dynamics Glossary
What is the meaning of Misperception of Feedback?
Decision-making in dynamic environments can be highly unreliable. In an
inventory management problem, Kleinmuntz (1993: 226) observed that as both
delays and complexity increased, performance of those making decisions intended
to manage the inventory deteriorated. There are many examples of
this deterioration of our decision-making capability when we fail to
understand the feedback dynamics that operate. We are most likely
to make reliable decisions when previous decisions and observed feedback
effects are juxtaposed. This is infrequently the case. What is
described here is what is known as the ‘misperception of
feedback’ or more correctly the ‘misperception of the
implications of feedback’. It is also described by Sterman (1989a;
1989b; and 1989c.). What underlies and produces dynamic behaviour is
frequently masked. We need ways of discovering these mechanisms before
we can appreciate why systemic response to remedial strategies we
implement are often counter-intuitive. For this we call upon the
power of system dynamics modelling. Without it we might continue
to rely on extant and often inappropriate decision heuristics. We
need to be able to uncover the complex set of
interrelationships and underlying operating mechanisms that produce the observed dynamic
responses.
Other topics in our resources on System Dynamics related to Misperception of Feedback include:
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